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By David E. Pearson

"Western Canadian coking coals are located in the Rocky Mountains arid foothills of British Columbia and Alberta. They are typical of non-marine coals, characterized by total sulphur contents of less than one per cent and with ash contents of 10-30 weight per cent. This mineral matter is composed principally of kaolinite and quartz.The petrographic compositions of most of the coking coals which constitute the 2.065 billion tonnes of British Columbia's measured reserves, and the compositions of the metallurgical coal currently exported from Alberta, show them to be rich in the inertinite macerals, macrinite, fusinite and semifusinite. When the mean maximum reflectance of vitrinite in oil/Romax) is used as the coal rank parameter, this high inertinite content is reflected in the lower volatile-matter yields, but the relatively inert character is also displayed by lower free swelling indices (PSI), lower maximum dilatations, lower maximum fluidities and lower coke strengths than other coals of the same rank, but richer in the reactive macerals, vitrinite, exinite and semifusinite. Despite these reduced values in the so-called caking tests, inertinite-rich coals produce strong coke.A system of classification of coking coals is introduced which is based on rank, as indicated by Ro max, and either petrographic composition, maximum dilatation, maximum fluidity or, to a lesser extent, PSI and volatile-matter yield. Six principal coal groups can be distinguished among coking coals using this versatile classification. Inertinite-rich coals are assigned to the Keystone Group (GI), Balmer Group (G3) or Moura Group (G4), each group being named for a coal typical of that population ofcoals. Reactive-rich coals are assigned to the Pittston Group (G2), Kellerman Group (G5) or Big Ben Group (G6). A multiple-regression analysis of coal quality versus price shows how the value of coking coal in the Japanese market appears to be related to reflectance and the free swelling index, and confirms the economic viability of the classification.British Columbia's measured reserves of coking coal contain representatives of four of these groups; Balmer Group (73%), Moura Group (/6%), Pittston Group (3.4%) and Kellerman Group (7.6%).This analysis of the quality of Western Canadian coking coal indicates that despite the need for large proportions of inertinite-rich coking coal in blends produced in the Japanese steel industry, there is nevertheless a demonstrated overabundance of Balmer Group and Moura Group coals available to the international coking coal market."

Jan 1, 1980

By O Omidi

Selection of delay times to optimize fragmentation has been a controversial topic among researchers and blasting practitioners. This paper reviews previous experimental information and presents the results of new tests conducted in small blocks constructed using a commercial grout. The effect of the delay on the average fragment size, coarse fragmentation and uniformity of fragmentation is discussed. Fragmentation was coarser at extremely short or extremely long delays, while a fairly constant average size was obtained at a variety of intermediate delays. Uniformity, defined as the slope of the fragmentation distribution through the average fragment size, was poor at short and very long delays and relatively constant at the intermediate delays. Some tests attempted to minimize the effect of gas penetration by lining the boreholes with copper tubes. When this was the case average fragmentation changed marginally, while uniformity was significantly affected by delay and was typically smaller than in the unlined tests.

Jan 1, 2014

By R. V. Higgins

A numerical method is presented to calculate the isopressure (isobar) lines and streamlines for an oilfield from the pressure distribution. A knowledge of these lines is useful in the study of the flow of fluids in underground reservoirs, especially for those containing gaseous and/or liquid hydrocarbons. This work was done primarily to enable determination of the shape factors needed in the calculation of petroleum reservoir performance. However, it has application for the flow of water in aquifers, or electricity or heat in odd-shaped geometry. Techniques previously developed were used to calculate the pressure distribution. From this pressure distribution, the isopressure lines were calculated accurately by the method presented in this paper. Then by successively projecting orthogonal lines from one isopressure line to another, the streamlines are determined. From the coordinates of the isopressures and the streamlines, the shape factors can then be determined by a published method. Computer methods are presented to calculate the streamlines and isopressures for any well-spacing pattern existing within a field with multiple wells. The method reproduces the flow net for several well configurations having extensive geometrical variations. Such information provides the petroleum engineer with data from which he can compute oil recoveries for different patterns and thereby maximize the recovery of hydrocarbons from the reservoir.

Jan 1, 1972

By D. C. Downing

"I THANK YOU for the invitation which The Mining Society of Nova Scotia extended, originally to Gordon Berry, manager 'of our Point Tupper Refinery, to join you at this meeting and discuss refining and petrochemicals in their relation to this region. There are natural advantages in Nova Scotia which have made possible, and will continue to make possible, sizeable developments both in petroleum refining and in chemicals. Equally, however, as is the case everywhere, there are certain constraints. For clarity in this presentation, I will state some of these constraints right at the beginning. First, of any future developments from now on, only a small proportion of the products can be expected to go into local markets. I can make the point best with a few figures. Petroleum companies all have market forecasts. None ever work out to be perfect, but the trends are relatively predictable and the orders of magnitude are certainly correct. Estimates for the use of all refined petroleum products in the four Atlantic provinces are:"

Jan 1, 1973

By Alfred H. Brooks

The developments of the past five years have shown that Alaska, as a field for mining, stands in the first rank among the possessions of the United States. Its annual gold output is now about $8,000,000. It produces silver, copper and coal in commercial quantities and its recently discovered tin and petroleum promise to become important products. Concurrent with the gradual development of this wealth, the mining public has ceased to regard the territory simply as an arctic province where a few placer-miners struggle with adverse conditions to secure a grub-stake or a modest fortune. Of late years there has been a large influx of capital to investigate its mineral resources, but in its area of nearly 600,000 sq. miles there still remain large, unexploited and little-known fields. This work of investigation has been carried on under adverse conditions, and reflects credit on all who have shared in it, whether prospectors, mining engineers, or geologists. It is the purpose of this paper to outline briefly what has been, and is being, accomplished toward furthering the knowledge of Alaska's mineral wealth, and in this connection to present a brief history of the operations of the United States Geological Survey in the territory. A list of the publications of the Geological Survey, which pertain to Alaska, is presented as an appendix, in the hope that it may prove useful to those who are interested in the mining of this northern province. During the Russian occupation of Alaska, from 1783 to 1866, but little attempt was made to delineate its geographic features or to study its geology and mineral resources. The Russian-American Co., which long held control of the territory, was entirely absorbed in the exploitation of its fur trade,

Jan 1, 1905

By Thomas E. Leontis

INTRODUCTION THE importance of magnesium alloys in the manufacture of aircraft engines has been realized for many years. A concentrated effort has been exerted in the laboratories of the Dow Chemical Co. to develop magnesium-base alloys with improved properties at elevated temperatures whereby greater advantage can be taken of the inherent lightness of these materials. In an earlier publication,1 attention was called to the superior tensile properties and resistance to creep of cerium-containing magnesium alloys at temperatures up to 700°F. More recently, additional data on magnesium-cerium alloys have been furnished by Murphy and Payne.2 The present paper deals with the mechanical properties of sand-cast magnesium alloys containing zinc, at temperatures up to 500°F. The study includes binary Mg-Zn† alloys containing up to 10 pct zinc and several ternary and some polynary alloys based on the Mg-1Zn,†Mg-3Zn, Mg-4.4Zn, Mg-6Zn, and Mg-10Zn binaries. The compositional variation in the tensile properties, hardness, and creep at room and elevated temperatures, and in the electrical conductivity at room temperature has been determined. The results of these tests show that many zinc-containing magnesium alloys exhibit resistance to creep at elevated temperatures significantly higher than that of present commercial magnesium alloys, but lower than that of alloys of the magnesium-cerium type. In addition, they have high tensile properties at room and elevated temperatures and high conductivity. This combination of mechanical properties and conductivity indicates that these alloys should be given serious consideration for commercial applications involving exposure to temperatures higher than those to which present commercial magnesium alloys can be taken safely. LITERATURE The properties of sand-cast magnesium alloys containing zinc as a principal alloying element have not been investigated very extensively, especially at elevated temperatures. The following remarks, which are confined to sand-cast alloys, will serve as a summary of the most important references on this phase of magnesium metallurgy. The first recorded determination of the tensile strength of binary Mg-Zn alloys as a function of zinc content was reported by Aitchison.3 Similar studies, including the measurement of elongation and hardness, have been performed by Gann and Winston,4 Dumas and Rockaert,5 Haughton and Prytherch,6 and by Spitaler, the last being reported by Beck.7 A slight superiority in the tensile strength of chillcast Mg + 8 Zn alloy over the sand-cast alloy was noted by Maybrey 8 That alloys of magnesium containing 5 to 12 pct zinc

Jan 1, 1948

By John E. Miller

Supercompressibility factors, Fpv, were derived from experimental compressibility data for five helium-nitrogen mixtures containing from 50 to 100 pct helium. These Fpv values are required as volumetric correction factors for or if ice meter measurement of "crude helium" (helium-nitrogen) purchased by the Government in a program of helium conservation. Although compressibility measurements were made by the Burnett method (2)3 - for pressures from 100 to 3,400 psia and temperatures from 40° to 100° F, Fpv values were needed only for pressures from 400 to 2,000 psia. Consequently, values at increments of 2° F, 2 pct helium, and 10 psia were tabulated only for the required pressure range. Values for pressures outside this range can be calculated from information shown in the tables. Values for the second, third, and fourth coefficients in the equation Z = 1 + BP + CP2 + DP3 are also included.

Jan 1, 1963

By M. Prasad, G. M. Rao, T. C. Rao, A. K. Majmudar

A two-step flotation scheme was employed to beneficiate a low-grade, cherty-calcareous rock phosphate ore from the Jhabua district, Madhya Pradesh, India. In the first stage, apatite and calcite ire floated together to remove silica, and, in the second stage, calcite is floated and apatite is depressed. The reagent scheme consists of sodium oleate, sodium silicate, orthophosphoric acid and sulfuric acid. The effect of reagent dosages on the efficiencies of separtition in each stage was studied systematically. A flowsheet was proposed for the processing of a low-grade phosphate ore containing 12.5% P2O5, 26.5% SiO2 and a CaO/P2O5 ratio of 2.64 (=32% calcite). The proposed flowsheet would produce a composite phosphate concentrate containing 27.2% P2O5, 6.37% SiO2 and a much reduced CaO/P205 ratio of 1.66. The total P2O5 recovery for the composite concentrate would be 73% .

Jan 1, 1996

By Charles J. Zablocki, Robert J. Kamilli

"Buried, possibly mineralized granite cupolas at the Silsilah tin deposit in Saudi Arabia (lat. 26°06' N, long. 42°40' E) have been successfully located using a closely spaced electric-field-ratio profiling technique. In this study, electrical fields at 27 and 270 Hz across grounded electrodes spaced 50 m apart were measured along six traverses. This method is interpretable by inspection, unlike the dipole-dipole technique, which requires mathematical modeling for interpretation.In the study area, the technique allowed the authors to identify and distinguish among unroofed granite cupolas, cupolas with their aplite-pegmatite apical contact zones intact, strong (quartz-rich) and weak (relatively quartz-poor) greisens, dikes, faults, and pervasively argillized rocks.This method should be useful in the valuation of other shallow mineral prospects in similar settings in other parts of the world, especially deposits for which the location of vertical contrasts is important, such as veins or mineralized zones associated with the apexes of small igneous cupolas."

Jan 1, 1993

By J. D. Miller, J. Hupka

Important aspects of kerosene penetration into tar sand have been investigated. The natural tar sand porosity was measured and used to analyze the performance of the hot water process. Subsequently, pretreatment experiments, using 20-kg tar sand samples (Asphalt Ridge and Whiterocks, Utah) and kerosene as a diluent were carried out at the expected summer temperature (26°C) and the expected winter temperature (-14°C). The natural tar sand porosity accessible by diluent has a crucial impact on the reduction of bitumen viscosity and influences the penetration time required for successful bitumen separation from tar sand by hot water processing. Thus, the tar sand porosity is a critical variable that determines appropriate operating conditions. Experimental results indicate that diluent penetration into the Asphalt Ridge tar sand (high porosity) is almost complete after 30 min, whereas for the Whiterocks tar sand (low porosity) the penetration process is much slower, being still incomplete after 15 hours regardless of the ambient temperature.

Jan 1, 1994

By L. Chunpongtong

One of the challenges of mine planning is to determine the most cost-effective replacement time for aging equipment. The lifespan of equipment, such as haul trucks and shovels, deployed in mining operations varies due to the nature of the material and ground conditions in which it operates. For engineering economists dealing with aging equipment, the options become an economic trade-off between higher maintenance cost versus the cost of new equipment. The discount rate plays a significant role in this decision; the higher the rate, the longer the economically optimal lifespan. Therefore, the ultimate question is: ?How can the relationship between the discount rate and the economically optimal lifespan be expressed mathematically??

Aug 1, 2013

By David Heydon

NAUTILUS MINERALS is a leader in the commercial exploration for and evaluation of seafloor massive sulfide (?SMS?) deposits. Nautilus has exploration licences covering 15,000 sq km of seafloor in Papua New Guinea and is evaluating other areas in the Western Pacific. The Nautilus Western Pacific Gold-Copper project is an interesting case study of the interaction of the disciplines of Science, Engineering and Environmental Science to solve and attend to the challenges of a project without precedence. The Science books of geology and marine biology with respect to seafloor massive sulfides are still being written or at best are thin volumes with recognition still we know very little at this time. Science?s early discoveries and study of these mineral processes on the seafloor provided invaluable data from which to develop an exploration strategy and the genesis of Nautilus itself. The Engineering required for development of such deposits is a combination of yet to be tested ?theory and engineering principles? and adaptation of best practice from other fields such as oil/gas and telecommunication cable laying. The Environmental guidelines for exploring these deposits, let alone mining them, is at the moment still being debated by a panel of experts chosen by the International Seabed Authority.

Jan 1, 2005

By A. E. Sands

The Bureau of Mines, S. Department of the Interior) at, its Morgantown., W. Va., station, operating under a cooperative agreement with West Virginia University, is conducting research and development work on the problem of producing synthesis gas from coal. An important part of this work is the study of the gas purification necessary to meet the rigorous standards required to render the gas suitable for use in the Fischer-Tropsch synthesis of liquid fuels. One of the most detrimental impurities is sulfur in all forms, the maximum amount that can be tolerated being one-tenth of a grain per hundred cubic feet. Concentrations as low as this require the use of precise analytical methods to evaluate the performance of processes used for removing sulfur. At the same time the analytical methods should be rapid in order to reveal the failure of purification before damage to the expensive synthesis catalyst results. Although sulfur in unpurified gas is generally present as hydrogen sulfide and as organic sulfur compounds, the latter may be converted to hydrogen sulfide for analytical purposes. Thus a suitable method for the determination of traces of hydrogen sulfide may also be used for the determination of organic sulfur.

Jan 1, 1949

By H. I. Aaronson, W. L. Winterbottom, G. M. Pound

On the basis of a statistical thermodynamic treatment of the data of smithz2 on the activity of carbon in austenite, a Darken and smith23 deduced that the interaction energy, wy, between carbon atoms occupying nearest-neighboring interstitial sites is repulsive. Aaronson, Domian, and pound 24 (ADP) have applied two different statistical thermodynamic analyses to the same data. One analysis, a composite of the treatments of Darken and Smith,23 Speiser and Spret-nak," and Kaufman, Radcliffe, and Cohen,26 primarily takes account of the positional entropic effects of wy in dilute solutions. The other, due to Lacher 27 and Fowler and Guggenheim," is also applicable to more concentrated solid solutions. The equations which both analyses produce for a,, can be rearranged so that, when In a,, is plotted against the appropriate function of the carbon content of the austenite, the plot will have a slope of unity when the correct value of wy is employed. Since no other constant need be simultaneously evaluated in order to make this determination, ascertaining the most probable value of wy from Smith's data on the bases of these analyses was an elementary problem in least-squares statistics. ADP demonstrated that the wy's obtained from both analyses vary with temperature in a statistically significant manner. McLellan, Gerrard, Horowitz, and sprague 29 (MGHS), on the other hand, have recently made a new statistical thermodynamic study of a,, and have concluded from this study that wy is independent of temperature. The equation which they derived for a,, is: where 0 = ratio of the mole fraction of carbon atoms to that of iron atoms, z = number of sites from which occupancy is excluded by the presence of a carbon atom and the repulsive character of its interaction with nearest-neighboring carbon atoms (z = zb in Ref. 24), and x = a geometric parameter taking account of overlapping of the exclusion shells of nearby carbon atoms. z is 1 when wy = 0 and 13 when wy = Q. For a given value of z there is a definite value of X . In the absence of an equation connecting z and X, MGHS computed geometrically the value of x at several integral values of z; x increases from 0.47 to 8.67 as z is increased from 2 to 5. MGHS fitted Eq. [I] to the a,, data of Ellis, Davidson, and Bodsworth30 at 925° and 1050°C and to the data of smithz2 at 1000°C. Confining z to integral values in the range 4 to 6, and also somewhat restricting AG, the values of z, X, and AG were sought which would minimize the average root mean square percent deviation, D, of the calculated a,, values from those obtained experimentally. Finding that D was almost always smallest when z = 5, they concluded that z is independent of temperature. Since:23, 26 where R = gas constant and T = absolute temperature, and w,, was considered to be similarly invariant, this statement cannot be strictly true. The temperature range employed, however, was small and the interval between the values of z tested was sufficiently large so that the results could still be consistent with a constant The statistical treatment of the a,, data applied by MGHS is clearly quite approximate. Since more than three values of a,, are available at each temperature, z, and X, and AG have actually been over deter mined, rather than underdetermined as their treatment implies. In order to make more complete and exact use of the a,, data, we shall employ the Legendre Method of Least Squares, as described by Whittaker and Robinson. This technique permits conversion of the overdetermined system of equations produced by the substitution into Eq. [I] of the available pairs of a,, and 0 data at a given temperature into an even determined system. Solution of the latter system yields the most probable value of each of the three constants. This procedure will allow a statistically rigorous test to be made of the conclusion drawn by MGHS in respect of the temperature dependence of In order to obtain linear iiequations of conditions" from Eq. [I], the exact values of the three unknown constants are replaced by G/RT = =/RT + y, where z, i, and aG are estimated values of the constants. This allows the conditional equations to be written in the form:'l where fi -f6, i, =/RT) = the right-hand side of Eq. [I] for a given pair of ayi and values. When applied to Eq. [I], these relationships become: The i equations of condition are reduced to three "normal equations" in the manner discussed by Whittaker and Robinson. The normal equations are then solved for a, ß, and y. Both of these operations are most conveniently performed by means of the computer technique of Winterbottom and Gjostein.32 This technique was used iteratively until the value of 0 (the most sensitive of the three correction factors) became 10.01. (Until they became small, a, 8, and y

Jan 1, 1969

By A. F. Agnew

Discussion by A.E Agnew Strachan's paper summarizes a wealth of data on water-storage dam "incidents" published by USCOLD and ASCE in 1988, together with a review of tailings-dam incidents published by USCOLD in 1994. The data is summarized by text and 11 histograms. The histograms present a useful compilation of these data, although the patterns within the histogram blocks did not survive the Mining Engineering printing process - so their usefulness is impaired. Unfortunately, the text discussion is too cursory and does not highlight the significant relationships among the various causes of the incidents. Four paragraphs of text and Fig. 1 were devoted to water-storage dams, but the discussion is too sketchy, and Fig. 1 is unclear. Important statistics that could be uncovered are: •the total number of dam incidents tabulated were 500+, •earth embankments constituted 73% of those in operation and •incidents related to earth embankments were 75%, of which dam failures accounted for 24%, major repairs accounted for 42% and accidents accounted for 34%. Strachan concluded that "the majority of the dam failures are associated with overtopping (p. 49), and that the majority of incidents are associated with spillway and other facility structures" - although this is difficult to discern from Fig. 1. Confusion regarding Strachan's use of the terms "dam failures" and "incidents" is compounded by his use of "failures" and "accidents" in one paragraph of his Introduction section followed by his use of "incidents" in the next paragraph. Getting to the meat of Strachan's important paper, the tailings-dam incident survey (USCOLD, 1994), the connection between Figs 2 through 11 seems obscure. First, in the four paragraphs of introductory material, one learns that "incidents consisted of failures, accidents, seepage and other incidents of performance that did not meet design criteria" (p. 50). One does learn the helpful caveat that "structures not related to mill tailings were not included in the review" - so that the Buffalo Creek (West Virginia in 1972) and Aberfan (Wales in 1966) coal-mine failures, together with the ongoing metal-mine remediation work at Summitville (Colorado) do not muddy the waters of his paper. The all-too-brief discussion of the data shown in Figs. 3 through 11 (185 dams in USCOLD plus 26 dams in UNEP) reveals the following: •Figure 3: 57% of the incidents (failures and accidents) occurred with dams less than 20-m (66-ft) in height. •Figure 4: 63% of the incidents were due to failures alone (subset of Fig. 3). •Figure 5: Active dams had 82% of the accidents and 93% of the failures. •Figure 6: Types of dams (upstream, water-retention, downstream, centerline and "unknown") separated according to incidents. •Figure 7: Breaks out the incidents in Fig. 6 by failures, accidents and ground water. •Figure 8: Breaks out incidents by type (overtopping, slope stability, earthquake, foundation, seepage, structural, erosion, mine subsidence and "unknown"). •Figure 9: Separates Fig. 8 data into active and inactive dams. •Figure 10: Separates Fig. 9 data into failures and accidents. •Figure 11: Same as Fig. 8, but broken out by tailings-dam type (Fig. 6). Figures 6 and 7 show that most of the failures are associated with upstream or "unknown" types. Figure 9 shows that the leading causes of incidents for active dams

Jan 1, 2003

Two sessions during the recent AMC Mining Convention in Los Angeles, September 23-26, served to update industry personnel on the status of health and safety regulations in the US. As reflected by the American Mining Congress resolution on mine safety and health, "Based on experience with the federal Coal Mine Health and Safety Act of 1969 and the federal Mine Safety and Health Act of 1977, (AMC) does not believe that laws designed to force compliance with regulations through the imposition of criminal or civil penalties will result in safer mines. (AMC) feels that the government's participation will be much more productive if greater emphasis is placed on research, training, and inspections aimed primarily at assisting operators and employees in recognizing and eliminating hazardous conditions and practices.

Jan 11, 1979

By W. R. Gilliland, G. W. Jones

"One-phase of the accident prevention program of the Bureau of Mines is the determination of the explosion hazards of various combustible gases and vapors encountered,mining and allied industries and the development of means and methods of eliminating them.Gasoline is foremost among the combustible-liquid's as to quantity used and variety of applications in industry, It is a chief contributor to the causes of fires and explosions, taking an enormous yearly toll in property damage and considerable loss of lives.The results presented in this report evaluate the effect of various gaseous inert substances, which owing to their chemical composition, should be of considerable value in the prevention of gasoline fires and explosions. The substances investigated are as follows: Nitrogen (N2), automobile exhaust gas (85 percent N2 + 15 percent CO2), carbon dioxide(CO2), dichlorodifluoromethane (CCl2F2-Freon-12), trichloremenofluoromethane (CC13F-Freon-11), and dichloromonofluoromethane (CHCl2F-Freon-21).The general term ""gasoline"" designates a combustible liquid of such characteristics as to give satisfactory operation without preheating in spark-ignition-type internal-combustion engine. It comprises a complex hydrocarbon mixture having a limiting distillation range and produced commercially by distilling or ""cracking"" crude petroleum or other various petroleum stocks. Small proportions of other substances may be incorporated in the gasoline to enhance its antiknock properties or operating characteristics in internal-combustion engines and to increase its stability during storage, transportation, and use.It is thus seen that gasoline may have rather wide variations of chemical and physical properties, and it would: appear that the results of any investigation dealing with one particular gasoline might not be applicable to other types. However, as indicated by the results given in this report, the inflammable properties of different gasolines at normal atmospheric temperatures are influenced largely the mars volatile hydrocarbons containing 5, 6, 7 carbon atoms- in the molecule, and that the heavier constituent of higher molecular weight have a minor influence on the inflammable properties at ordinary temperatures."

Apr 1, 1946

By F. Sanchez, A. Mejias, C. Frias, G. Diaz

"Crude zinc oxides are the major source of secondary zinc and are produced from fuming processes like Waelz kilns. The impurities of crude zinc oxides make difficult their processing in primary zinc refineries due to mainly high chloride tenor. Washing with sodium carbonate is a costly operation and chloride removal efficiency is not good enough, so further purification steps are required. The crude zinc oxides are easily treated using ZINCEX™ technology based on leaching, solvent extraction, and electrowinning. The ZINCEX™ process is commercially available and is designed to be a perfect barrier for metallic impurities and halogens, allowing selective zinc extraction in mixed chloride and sulfate leaching solutions. Other valuable components as lead and silver can be efficiently recovered from the leaching residue using PLINT technology in chloride media. Silver is recovered as silver cement and lead is precipitated as pure lead oxide or carbonate, which can be smelted at low temperature.IntroductionZinc is a fully recyclable metal and at present approximately 70% of the zinc produced worldwide comes from primary zinc while 30% originates from secondary materials. Nowadays, the zinc recycling rate is continuously increasing mainly through galvanized steel scrap processing, and crude zinc oxides are the major source of secondary zinc [1]. Secondary zinc oxides are obtained from fuming processes like W aelz Kiln, Rotary Hearth Furnace or Primus Furnace. Waelz is the dominant technology accounting for 80% of total crude zinc oxides production worldwide. In the Waelz process, steel dust is mixed with solid fuel reductant (coke breeze) and pelletized. It is then fed to the kiln and heated to a reaction temperature of l ,200°C. In such conditions, zinc, lead, and other non-ferrous metals are vaporized into the flue gas together with chlorides and alkaline metals. Mixed oxides are drawn from the kiln with the process gases and separated to produce typical crude zinc oxides [2]."

Jan 1, 2011

By E. W. Engle

Fox several years the Fansteel Products Co. has been engaged in the production and development of various of the rarer metals. It is at present engaged in the commercial production of tantalum, tungsten, and molybdenum in a very high state of purity. The information contained in this paper is partly a general compilation from various sources and partly information obtained as a result of recent years of work in the laboratory of this company. Tantalum, tungsten, and molybdenum form a group peculiar to themselves among the commercially available metals. Their very high melting points (tantalum 2770° C., tungsten 3350° C., and molybdenum 2550° C.) set them apart so far as the metallurgical processes for their production are concerned. Further, when properly prepared and treated they will stand a somewhat unusual degree of cold work, that is work below the temperature at which marked crystal growth takes place. Such cold-worked metal may show a high tensile strength; tantalum to 130,000 lb. per sq. in., tungsten to 490,000 lb., and molybdenum to 260,000 lb., in the form of fine wire. In physical appearance, these metals are not unlike some steels; they may be better described by saying that polished tantalum some¬what resembles lead; polished tungsten, iron; and polished molybdenum, nickel. The polished surfaces of all three remain untarnished in ordinary air. Air containing corrosion-producing impurities will, in general, show molybdenum the least resistant to corrosion and tantalum the most resistant. Molybdenum has, however, a high degree of resistance to corrosion by hydrochloric acid, a property that should render it of commercial interest. On the other hand, it is markedly attacked by some of the weaker organic acids.

Jan 3, 1925

By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996